Medtronic Inks Deal To Run Cardiac Labs For Ohio Hospital
Medtronic’s services and solutions business, a budding division within the med-tech company that helps manage operating rooms and catheter labs at hospitals worldwide, is officially making its way into the American health care system.
University Hospitals (UH) announced Tuesday that it had signed the first agreement between a U.S. hospital system and the services and solutions business of Medtronic, which keeps its U.S. operational headquarters in Fridley.
The arrangement will allow UH Cleveland Medical Center bringing on as many as 10 Medtronic employees to assist with non-clinical work, specifically within the catheterization (cath) and electrophysiology (EP) labs where Medtronic products are used during heart operations and other procedures.
By pairing with Medtronic, UH operating officer Jeffrey Peters said it would provide the Cleveland Medical Center “a unique opportunity to learn from their international best practices in inventory management and scheduling optimization.”
Claims of improving efficiency and cost effectiveness are the driving force in Medtronic’s signing partnerships between its services and solutions business and over 100 hospital systems worldwide.
“The benefits remain to be seen,” Peters told the Star Tribune, “but we believe them to be an improvement in efficiency, labor management, supply chain management, [patient] throughput, scheduling — all the operating functions of the clinical unit.”
Medtronic anticipates signing more deals with U.S. hospital systems in the future as its services and solutions business continues on its swift rise. At the start of the company’s fiscal 2017 year in August, Medtronic CEO Omar Ishrak said in a conference call that “while the majority of our activity is in Europe, we continue to expand into other regions including Latin America and the Middle East and Africa.”
At the time, Ishrak said the company’s services and solutions business had experienced revenue growth in the mid-40 percentile and was representing more than $2.1 billion in contracted services and product revenue over an average six-year span.
“Medtronic has more than 65 years of experience to bring to the table,” said Mike Genau, president of Medtronic’s Americas region, “and we intend to be a close associate in implementing solutions along the way.”